Jacqui Smith: I would like to update the House on the loss of sensitive data by PA Consulting and to inform the House that the Home Office has terminated the contract with PA Consulting that covered the handling of these data.
	On 19 August PA Consulting formally notified the Home Office of the loss of a data stick containing sensitive information relating to the JTrack system which PA manage under contract to the Home Office. I was informed the same day and immediately initiated an inquiry into this incident, undertaken by the Home Office Security Unit with advice and support from the Metropolitan Police. The incident inquiry has now been completed. The Information Commissioner and Cabinet Office have been kept fully informed. I have also today sent a full report to the Information Commissioner and have placed a copy in the House Library.
	JTrack is the operational system used by the police and Crown Prosecution Service as part of the Government's Prolific and other Priority Offender (PPO) programme. The data on JTrack relate to prisoners and other offenders in England and Wales.
	The inquiry found that data were transferred to PA from the Home Office in a secure manner. These data were not handled securely by a PA employee on their premises. Data were downloaded to a data stick. The data stick was used to transfer data between computers on the PA premises and was not encrypted or managed appropriately. The data stick went missing and, despite extensive searches, has not been found. This was a clear breach of the robust terms of the contract covering security and data handling.
	Based on the findings of the inquiry, the Home Office have decided to terminate this contract. My officials are currently working with PA to take this work back in house without affecting the operation of JTrack or the PPO programme. Data transfers to PA for JTrack were suspended immediately following the incident, data handling has now been transferred to the Home Office, and the system is fully operational. Other PA activity such as system maintenance and user training will be transferred by December.
	We are reviewing our other contracts with PA, specifically from a data handling and security perspective. Lessons learned from this incident more generally will be applied to working with suppliers on contracts involving sensitive data.
	Together with the Association of Chief Police Officers and the Ministry of Justice, we have undertaken careful assessments of the potential risks to individuals of this incident. The risk to public safety is assessed as low. The risk to individuals whose data was lost is also assessed as low. Appropriate measures are in place for individuals seeking information about the data held on them.
	The Home Office has been very active in implementing the findings of the Hannigan Data Handling Review but as with other incidents of data loss the Government are reviewing the circumstances of this incident and will ensure that any lessons, including in relation to strengthening the delivery chain, are incorporated in the ongoing programme of work to provide support and guidance to Departments on information assurance.
	Given the seriousness of this incident, I believe it is important both to provide external assurance to the public on our response to the incident and also to enable others to benefit from the lessons learned. Hence I have commissioned Dr. Stephen Hickey to undertake an external scrutiny of our response. I will be placing a report of his findings in the House Library in due course.

Gordon Brown: Between 8 and 12 August, Russian and Georgian troops clashed in Georgia's separatist region of South Ossetia. The resulting conflict led to a tragic loss of civilian life, and the displacement of over 100,000 people.
	From the start of the conflict, the UK and its international partners have been involved in intensive discussions, including through the UN, EU, NATO, G7 and OSCE, to agree a ceasefire and to find a durable and peaceful way forward. I spoke to Russian President Medvedev and to other Heads of State, including Presidents Bush and Sarkozy, to try to find a way forward. My right hon. Friend the Foreign Secretary, visited Georgia where he met President Saakashvili and Members of his Government.
	On 12 August, the EU and OSCE were able to broker a ceasefire between the parties and agreement to a way forward. This agreement included six key principles:
	the parties not to resort to the use of force;
	the parties to stop all military actions for good;
	the parties to allow free access for humanitarian aid;
	Georgian armed forces to return to their places of usual permanent deployment;
	Russian armed forces to withdraw to the line they occupied before the start of military actions. Until such time as an international mechanism is created, Russian peacekeeping forces to implement additional security measures;
	the parties to engage in international discussions on the modalities of security and stability in Abkhazia and South Ossetia.
	Despite this plan, on 26 August, Russia unilaterally recognised the independence of South Ossetia and of Georgia's other separatist region, Abkhazia. Russia also refused to withdraw its forces from Georgia and in some cases moved to reinforce them.
	It was in this context that I and my right hon. Friend the Foreign Secretary attended the Extraordinary European Council on 1 September, convened by French President Nicolas Sarkozy, in his capacity as current presidency of the EU, to discuss the current crisis in Georgia.
	At this meeting the European Council unanimously condemned Russia's decision to recognise the independence of Abkhazia and South Ossetia; and expressed its grave concern about the consequences of the conflict and Russia's disproportionate military action. Russia's actions were in clear breach of international law and of successive UN Security Council Resolutions.
	In response to Russian actions, the Council decided to conduct a comprehensive review of EU-Russia relations. This evaluation has begun and will continue in the run up to the next EU-Russia summit scheduled to take place in Nice on 14 November 2008. The EU has decided to suspend negotiations with Russia on the new EU Partnership and Co-operation Agreement (PCA) until Russian troops withdraw from Georgia to their pre-conflict line. We strongly support this decision. As I made clear during Council discussions, although the EU should continue discussions with Russia on areas of interest and concern to the EU, it cannot be "business as usual". This review will allow us to take a considered decision about the future of EU-Russia relations.
	Russia's actions in Georgia illustrate the need for Europe to intensify efforts to ensure its long-term energy security. The European Council tasked the EU with examining initiatives to be taken to this end. We should explore all options for the diversification of energy supply in the EU, including increased support for infrastructure that diversifies energy sources, an increased commitment to renewable energy, measures to improve energy efficiency and measures to improve the internal market.
	The international community must support Georgia in rebuilding the damage caused by the conflict. The European Council made clear the EU's commitment to supply humanitarian aid and support for Georgia's long-term reconstruction efforts, including in Abkhazia and South Ossetia. The Council and the Commission have been tasked to start preparations for an international conference to bring focus to reconstruction efforts. The UK will play its part. We have already committed £2 million to Georgia in humanitarian aid. The EU has pledged to step up its relations with Georgia, including through visa facilitation measures, appointing an EU special envoy and the possible establishment of a full and comprehensive free trade area as soon as the conditions are met.
	At the European Council, the EU unanimously called on the parties to implement the EU/OSCE peace plan in full. On 8 September, President Sarkozy, EU Commission President Barroso and EU High Representative Solana travelled to Moscow to press Russia to abide by its commitments. I welcome the agreement reached during this meeting that Russia will withdraw its troops from Georgian territory outside Abkhazia and South Ossetia and that Russia will commit to international discussions on future security modalities. This is a good first step towards peace and security. But it is only the start; Russia must now implement these commitments and must engage fully in finding a lasting solution to the crisis.
	The international community will support efforts to ensure lasting peace and security in the region, including through the presence of observers on the ground. In line with the EU Council conclusions and the 8 September Moscow agreement, the European Union will contribute to these efforts. EU Foreign Ministers will discuss the deployment of EU monitors at the General Affairs and External Relations Council (GAERC) on Monday, 15 September. It is vital that international monitors are given free and unfettered access by all sides to carry out their mandate.
	The EU's response to this crisis must also consider the implications for the EU's common neighbourhood. On 27 August my right hon. Friend the Foreign Secretary travelled to Kiev where he made a speech on the need for closer ties between the EU and the region. I am pleased that the Council agreed that the EU should strengthen its relations with the region, including Ukraine. I welcome the successful EU—Ukraine summit which took place yesterday (9 September). I look forward to the Commission's proposals for enhancing EU relations with the region, due in December this year.
	The UK will continue to work with international partners to ensure that effective support is given to Georgia and that a lasting, peaceful solution is reached as soon as possible.
	My right hon. Friend the Foreign Secretary and I will continue to keep the House informed of developments.